A small town is considering two potential alternatives for a garbage collection system. Thefollowing cost data has been compiled. If the interest rate is 6%, Compute the AB /AC ratio.YearSystem ASystem B0-$250,000-$375,0001-3020,00032,0003040,00050,000O 1.341.090.96○ 2.27

The objective of the question is to calculate the AB/AC ratio for two potential alternatives for a…

Answered: A small town is considering two…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A small town is considering two potential alternatives for a garbage collection system. The following cost data has been compiled. If the interest rate is 6%, Compute the AB /AC ratio. Year System A System B 0 -$250,000 -$375,000 1-30 20,000 32,000 30 40,000 50,000 O 1.34 1.09 0.96 ○ 2.27